Sensex crashes 700 points in early trade—Here we decode why
What's the story
India's benchmark indices, the Sensex and Nifty, have opened on a weak note today. The fall comes amid global uncertainties and a major sell-off in IT and metal stocks.
At around 9:30am, the Sensex was down by 722.98 points or 0.89% at 80,728.03, while Nifty had lost 195.15 points or 0.79% and stood at 24,555.55.
The broader market followed suit with similar declines across sectors.
Market analysis
Global uncertainties and domestic factors impact market
The current market situation indicates a prolonged consolidation phase, say experts. Global uncertainties like fresh tariff threats are likely to cap any major upswing.
However, domestic factors could provide some support against further declines.
US President Donald Trump's recent announcement of 50% tariffs on steel and aluminum is expected to contribute to ongoing volatility in global trade, which may affect investor sentiment.
Sector performance
Sectoral indices show mixed performance
Today, sectoral indices showed a mixed trend with most trading in the red.
The Nifty Metal and Nifty IT were the worst performers, falling by 1.4% and 1.2%, respectively. Other sectors like consumer durables and private banks also witnessed significant declines of up to 0.6%.
However, the Nifty PSU Bank emerged as a top gainer with a marginal rise amid heightened market volatility, reflected by India VIX spiking over 7% to 17.09.
Stock updates
Stock-specific movements amid market fluctuations
In stock-specific movements, Mahindra & Mahindra's shares fell despite a strong rise in May sales due to robust SUV demand.
The company reported a 17% year-on-year increase last month with over 84,110 vehicles sold across domestic and export markets.
Meanwhile, shares of Tata Motors slipped over 1% after an 8.6% YoY decline in vehicle sales last month.